Oil beginning to threaten SIFs
- Thread starter nitro
- Start date
There is a gap between 1340 and 1350 SPX. That may fill soon.
There is also one unfilled gap in XLF. It seems very unlikely that will also fill, but if it does, it probably projects SPX back close to the sub-prime-crisis lows.
Major support levels from here are 1370.xx, and then the 1340 ish to 1350 area.
nitro
There is also one unfilled gap in XLF. It seems very unlikely that will also fill, but if it does, it probably projects SPX back close to the sub-prime-crisis lows.
Major support levels from here are 1370.xx, and then the 1340 ish to 1350 area.
nitro
What about our "friendly neighbourhood bank" Goldman Sachs target of 1160, nitro ?
Quote from ASusilovic:
What about our "friendly neighbourhood bank" Goldman Sachs target of 1160, nitro ?
Why not? Any reasonable price is possible. Some people are suggesting that DOW will be at 8500. That would put SP approximately at slightly under 1000.
Do I think it will happen? Barring some unforeseen event, I say we see SPX 2000 before we see SPX 1100. Perhaps GS has a better crystal ball than I do, especially on the longer time frames.
nitro
Sorry I missed your posts.
1392 was support because it was tough resistance on the way up. Also, if you look at the charts, 1292 was also tough going, and people think in round numbers (5,10,15,...100 and 1392 = 1292 + 100; 1342 is the SPX gap, and 1392 = 1342 + 50), with zero values often having lots of standing orders (in both directions, sometimes to buy the dip, or to take a stop loss, and you have to read which wins in realtime).
Strong support/resistance is where you expect price to bounce or reflect at least twice, and probably several times. This is gathered either theoretically from major points like 1420, or from price action and volume concentrations around that price in history. If you are a professional trader, you also remember the price action around a given level, and you note it either on your charts, or I just remember.
The more a S/R level is traversed, the less it matters next time. For example, while we will see some resistance at 1420, it is now only minor resistance.
nitro
PS Many people believe these support/resistance points work because they are self fulfilling and have no basis in science. Perhaps. But I believe they work because I believe that underlying models used by institutions aggregately have attractor points there, unbeknown to them.
http://en.wikipedia.org/wiki/Chaos_theory#Attractors
1370 is SPX support. It is minor. You could try buying it, but if you do, don't buy ES, buy NQ on SPX support.
I hate to sound like a broken record, but remember that generally it is very bad form to buy red markets (bubble markets notwithstanding, e.g., buying red QM works "all" the time.)
nitro
I hate to sound like a broken record, but remember that generally it is very bad form to buy red markets (bubble markets notwithstanding, e.g., buying red QM works "all" the time.)
nitro
Days started out looking like it might be a strong day, and then it fizzled out. But the market did give us something to ponder, and few days are wasted even if you are not actively trading the action. Note the resistance at 1384.XX SPX and the support at 1372.XX SPX.
We knew about 1372.XX and aggressive traders bought that dip for a few handles. The 1384 SPX resistance is something we note.
nitro
We knew about 1372.XX and aggressive traders bought that dip for a few handles. The 1384 SPX resistance is something we note.
nitro